Mobile adult video chat revenues $1.5bn by 2012

Global revenues from adult video chat services are expected to rise sharply over the next five years, reaching $1.5 billion by 2012, according to a report from Juniper Research.

The report states that, while adoption levels of such services are comparatively low even by the standard of mobile adult services, the average monthly spend of this niche market is typically 10-20x higher than for other adult services.

According to report author Windsor Holden, “Those video chat services already deployed are showing quite remarkable levels both in terms of customer retention and average usage, with users regularly returning to chat to the same hostess and developing a virtual relationship with her. With 3G penetration expected to exceed 25 per cent in many developed markets by the end of 2008, there is a significant opportunity for service providers to launch and monetise live chat services.”

The report also recommended that, while users of mobile adult services are less price sensitive than those of other mobile content, offering subscription services at a reduced price for a trial period would ultimately increase revenues, as such a period allows the customer to ascertain whether or not the content is worth a greater, longer-term investment.